701—68.2  (452A)  Tax rates—time tax attaches—responsible party.
	   68.2(1) The following rates of tax apply to the use of fuel in operating motor vehicles and aircraft:
Gasoline	20.3¢ per gallon (for July 1, 2003, through June 30, 2004)
20.5¢ per gallon (for July 1, 2004, through June 30, 2005)
20.7¢ per gallon (for July 1, 2005, through June 30, 2006)
21¢ per gallon (for July 1, 2006, through June 30, 2007)
20.7¢ per gallon (for July 1, 2007, through June 30, 2008)
21¢ per gallon (for July 1, 2008, through February 28, 2015)
31¢ per gallon (for March 1, 2015, through June 30, 2015)
30.8¢ per gallon (for July 1, 2015, through June 30, 2016)
30.7¢ per gallon (beginning July 1, 2016)		

			

			
Ethanol blended gasoline	19¢ per gallon (for July 1, 2003, through February 28, 2015)
29¢ per gallon (for March 1, 2015, through June 30, 2015)
29.3¢ per gallon (for July 1, 2015, through June 30, 2016)
29¢ per gallon (beginning July 1, 2016)		

E-85 gasoline	17¢ per gallon (for January 1, 2006, through June 30, 2007)
19¢ per gallon (for July 1, 2007, through February 28, 2015)
29¢ per gallon (for March 1, 2015, through June 30, 2015)
29.3¢ per gallon (for July 1, 2015, through June 30, 2016)
29¢ per gallon (beginning July 1, 2016)		

			
Aviation gasoline	8¢ per gallon (beginning July 1, 1988)		
Diesel fuel other than B-11 or higher	22.5¢ per gallon (on and before February 28, 2015)
32.5¢ per gallon (beginning March 1, 2015)		
Biodiesel blended fuel (B-11 or
higher)	22.5¢ per gallon (on and before February 28, 2015)
32.5¢ per gallon (for March 1, 2015, through June 30, 2015)
29.5¢ per gallon (beginning July 1, 2015)		
Aviation jet fuel	3¢ per gallon (on and before February 28, 2015)
5¢ per gallon (beginning March 1, 2015)		
L.P.G.	20¢ per gallon (on and before February 28, 2015)
30¢ per gallon (beginning March 1, 2015)		
C.N.G.	16¢ per 100 cu. ft. (on and before June 30, 2014)
21¢ per gallon (for July 1, 2014, through February 28, 2015)
31¢ per gallon (beginning March 1, 2015)		
L.N.G.	22.5¢ per gallon (on and before February 28, 2015)
32.5¢ per gallon (beginning March 1, 2015)		
	   68.2(2) Fuel distribution percentages.
	      a.    	  Ethanol distribution percentage.
	       (1)  	  Except as otherwise provided in this paragraph, for March 1, 2015, through June 30, 2020, this paragraph shall apply to the excise tax imposed on each gallon of motor fuel used for any purpose for the privilege of operating motor vehicles in this state. The rate of the excise tax shall be based on the ethanol distribution percentage. The ethanol distribution percentage is the number of gallons of ethanol blended gasoline that is distributed in this state as expressed as a percentage of the number of gallons of motor fuel, excluding aviation gasoline, distributed in this state. The number of gallons of ethanol blended gasoline and motor fuel distributed in this state shall be based on the total taxable gallons of ethanol blended gasoline and motor fuel as shown on the fuel tax monthly reports issued by the department for January through December for each determination period. The department shall determine the percentage for each determination period beginning January 1 and ending December 31. The rate for the excise tax shall apply for the period beginning July 1 and ending June 30 following the end of the determination period. The rate for the excise tax shall be as follows:
Ethanol Distribution %	Ethanol Tax	Gasoline Tax	
00/50	29.0	30.0	
50+/55	29.0	30.1	
55+/60	29.0	30.3	
60+/65	29.0	30.5	
65+/70	29.0	30.7	
70+/75	29.0	31.0	
75+/80	29.3	30.8	
80+/85	29.5	30.7	
85+/90	29.7	30.4	
90+/95	29.9	30.1	
95+/100	30.0	30.0	
	       (2)  	  Except as otherwise provided in this paragraph, after June 30, 2020, an excise tax of 30 cents is imposed on each gallon of motor fuel used for any purpose for the privilege of operating motor vehicles in this state.
	      b.    	  Biodiesel distribution percentage.
	       (1)  	  Except as otherwise provided in this paragraph, for July 1, 2015, through June 30, 2020, this paragraph shall apply to the excise tax imposed on each gallon of special fuel for diesel engines of motor vehicles used for any purpose for the privilege of operating motor vehicles in this state. The rate of the excise tax shall be based on the biodiesel distribution percentage. The biodiesel distribution percentage is the number of gallons of biodiesel blended fuel classified as B-11 or higher that is distributed in this state as expressed as a percentage of the number of gallons of special fuel for diesel engines of motor vehicles distributed in this state. The number of gallons of biodiesel blended fuel and special fuel for diesel engines of motor vehicles distributed in this state shall be based on the total taxable gallons of biodiesel blended fuel and special fuel for diesel engines of motor vehicles as shown on the fuel tax monthly reports issued by the department for January through December for each determination period. The department shall determine the percentage for each determination period beginning January 1 and ending December 31. The rate for the excise tax shall apply for the period beginning July 1 and ending June 30 following the end of the determination period. The rate for the excise tax shall be as follows:
Biodiesel Distribution %	B-11 or Higher Tax	Other Than B-11 or Higher Tax	
00/50	29.5	32.5	
50+/55	29.8	32.5	
55+/60	30.1	32.5	
60+/65	30.4	32.5	
65+/70	30.7	32.5	
70+/75	31.0	32.5	
75+/80	31.3	32.5	
80+/85	31.6	32.5	
85+/90	31.9	32.5	
90+/95	32.2	32.5	
95+/100	32.5	32.5	
	       (2)  	  The determination period for the biodiesel distribution percentage is January through December each calendar year. Prior to July 1, 2015, Iowa licensees did not separately report the total taxable gallons of biodiesel blended fuel classified as B-11 or higher that is distributed in this state. Accordingly, the department cannot calculate the biodiesel distribution percentage for calendar years 2014 and 2015 using the method described in subparagraph 68.2(2)“b”(1). However, the best information available to the department indicates the biodiesel distribution percentage is not greater than 50 percent for calendar years 2014 and 2015. Therefore, for the period between July 1, 2015, and June 30, 2016, and for the period between July 1, 2016, and June 30, 2017, the rates for the excise tax on special fuel for diesel engines of motor vehicles are based on a biodiesel distribution percentage of 00/50%.
	       (3)  	  Except as otherwise provided in this paragraph, for the period between March 1, 2015, and June 30, 2015, and for the period after June 30, 2020, an excise tax of 32.5 cents is imposed on each gallon of special fuel for diesel engines of motor vehicles used for any purpose for the privilege of operating motor vehicles in this state.
	      c.    	  Legislative review. The ethanol distribution percentage, the biodiesel distribution percentage, and the corresponding excise tax rates are subject to legislative review at least every six years. The review is based upon a fuel distribution percentage formula status report, which contains the recommendations of a legislative interim committee appointed to conduct a review of the fuel distribution percentage formulas. The report is prepared with the assistance of the Iowa department of revenue and the Iowa department of transportation. The report includes recommendations for changes or revisions to the fuel distribution percentage formulas based upon advances in technology, fuel use trends, and fuel price fluctuations observed during the preceding six-year interval; an analysis of the operation of the fuel distribution percentage formulas during the preceding six-year interval; and a summary of issues that have arisen since the previous review and potential approaches for resolution of those issues. The first report will be submitted to the general assembly no later than January 1, 2020, with subsequent reports developed and submitted by January 1 at least every sixth year thereafter.
	   68.2(3) The tax attaches when the fuel is withdrawn from a terminal or imported into Iowa. The tax is payable to the department by the supplier, restrictive supplier, importer, blender, or any person who owns the fuel at the time it is brought into the state by a restrictive supplier or importer or any other person who possesses taxable fuel upon which the tax has not been paid. The tax is to be remitted to the department by a supplier, restrictive supplier, or blender by the last day of the month following the month in which the fuel is withdrawn from a terminal or imported. The tax is to be remitted by an importer by the last day of the month for fuel imported in the first 15 days of the month and by the fifteenth day of the following month for fuel imported after the fifteenth day of the previous month. Nonlicensees who possess taxable fuel upon which the tax has not been paid must file returns and pay the tax the same as a restrictive supplier (monthly). All licensees must make payment by electronic funds transfer (see publication 90-201 for EFT requirements).
	   68.2(4) The department shall determine the actual tax paid for E-85 gasoline in the previous calendar year and compare this amount to the amount that would have been paid using the tax rate imposed in Iowa Code section 452A.3, subsection 1 or 2. If the difference is less than $25,000, the tax rate for the tax period beginning the following July 1 shall be 17¢ per gallon. If the difference is $25,000 or more, the tax rate shall be the rate in effect pursuant to Iowa Code section 452A.3, subsection 1 or 2.
Beginning January 1, 2006, retailers of E-85 gasoline must file a report with the department by the last day of the month of each calendar quarter for each retail location showing the number of invoiced gallons of E-85 gasoline sold by the retailer in Iowa during the preceding calendar quarter. The report must also include a listing of the vendors providing E-85 gasoline to the retailer and the number of gallons received from each vendor. If the retailer blends E-85 gasoline, the retailer must show the number of gallons of motor fuel (including both gasoline and alcohol) purchased and blended. The report must be signed under penalty for false certificate.
	   68.2(5) Persons having title to motor fuel, ethanol blended gasoline, undyed special fuel, compressed natural gas, liquefied natural gas, or liquefied petroleum gas in storage and held for sale on the effective date of an increase in the excise tax rate imposed on motor fuel, ethanol blended gasoline, undyed special fuel, compressed natural gas, liquefied natural gas, or liquefied petroleum gas shall be subject to an inventory tax based upon the gallonage in storage as of the close of the business day preceding the effective date of the increased excise tax rate of motor fuel, ethanol blended gasoline, undyed special fuel, compressed natural gas, liquefied natural gas, or liquefied petroleum gas which will be subject to the increased excise tax rate.
Persons subject to the tax imposed under this subrule shall take an inventory to determine the gallonage in storage for purposes of determining the tax and shall report the gallonage and pay the tax due within 30 days of the prescribed inventory date.
The amount of the inventory tax is equal to the inventory tax rate times the gallonage in storage. The inventory tax rate is equal to the increased excise tax rate less the previous excise tax rate. The inventory tax does not apply to an increase in the tax rate of a specified fuel, except for compressed natural gas, unless the increase in the tax rate of that fuel is in excess of one-half cent per gallon.
This rule is intended to implement Iowa Code sections 452A.3, 452A.8 and 452A.85.
[ ARC 8225B , IAB 10/7/09, effective 11/11/09;    ARC 0399C , IAB 10/17/12, effective 11/21/12;    ARC 1442C , IAB 4/30/14, effective 6/4/14;    ARC 1805C , IAB 1/7/15, effective 2/11/15;    ARC 2247C , IAB 11/25/15, effective 12/30/15;    ARC 2698C , IAB 8/31/16, effective 10/5/16]